hard · Volume Spread Analysis
In the context of a potential accumulation base, the market marks the price down into a previous high-volume area. The price recovers to close on its high, but the volume is significantly lower than the prior two bars (RV < 0.80).
What does this suggest to the professional operator?
- The breakout has failed due to lack of effort.
- The market is weak because volume is declining on the recovery.
- The supply has been successfully tested and removed.
- Professional distribution is occurring behind the scenes.
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